Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (68445)	4/30/2001 7:40:20 AM
From: E. Charters	Respond to of 116779

Rarebird yo is korrect. The US has been exchanging its debt for substantially lower cost production or substantially better made products than they could afford to make. In addition it has been jacking the price of these goods by tariff and making the US labourer pay even more for them, in turn adding to the inflationary spiral. But in fact the US production economy and trade has been not that shabby. It competes in areas of industrial manufacture in that it is more highly automated in some areas and its schools turn out more engineers that are more capable than say, Asia. Most of our imported electronics are engineered in the US and often by low priced recent graduates who our own industry has no use for. As well American industry just makes stuff offshore when costs are too high. So many imports are actually adding to coffers of US companies. In addition it controls vast areas of offshore investment in raw materials as in Canada, where it (the US) fine tunes the price of to allow competitive American production. In the 1950's General electric made all the kitchen radios it would sell in the US for 5 years on a production line in six months. Whereas production cost are always touted as higher in fact, the high degree of industrial automation (Saturn Plant) and creative ouput (patents) allow the US to actually compete where it wishes to. What it cannot do is sell transistor radios and TV's to Japan. I give you radio you give me another radio, different colour, is not easy except in primitive societies. Gold for radio, means the US has to buy gold driving the price up and the dollar down, so it could not fine tune the balance as easy it would like. The problem here is only partly trade balance. The Japs have been seemingly been getting it easy for political reasons. The US really gets it easy as you have pointed out. They buy computers and electronics for printed dollars. What can the Japs buy with the dollars? More T-Bills that produce 6% on the paper of phony money in contrast to their own production-oriented paper's interest of almost zero. The US would not have it any other way. Why sell expensive stuff to the Japs they don't want or will drive their industry under? Buy their cheap stuff with cheaper paper and sell them still cheaper paper. The nation or institution that does the fundamental banking is always in control. Make debt and you have customers for life. The reason is you don't create the interest to pay it back so the lender either creates new wealth or he defaults. The lendings to defaulting South American countries are seemingly stupid. But as time goes by the Banana boys step up to the plate again. Who cares? They need yet more money, and are always in begging mode hat in hand, so the lender can get the concessions he wants. EC<:-}

To: Rarebird who wrote (68445)	4/30/2001 8:23:30 AM
From: long-gone	Read Replies (1) \| Respond to of 116779

<The standard of living under what we class as "poverty" in most of these United States is often higher than that of the middle class in many other places on the globe.> That is a true statement. But do you understand the process in which that has come about>> The "proccess" came about because LBJ started the "War on Poverty" This began an industry which is made up of Democrats being reelected to continue fighting the war. For there to exist any "War", there must be an enemy. In this war the Democrats will simply redefine the level of poverty so as to assure there are poor which can be bought with more newly printed paper. <<Your thoughts concerning Bush as being Pro Gold and for a weaker US Dollar, tells me your clueless.>> No, I refuse to declare the man a liar because he hasn't lowered the dollar "yet" when he is only 102 days into a term of 1460 days! (note - The dollar has been lower that it was at its highest level under Clinton- when he made the promise. <<How do you think a much higher POG will affect this living standard? >> There could be a far better balance of value of gold to dollars with little or no reduction standard of living. It would take only $40-65 to make most US traded mining firms show black at the bottom line.